Beijing has formally charged four employees of Anglo-Australian mining giant Rio Tinto with industrial espionage and bribery, setting the stage for a trial that will strain relations between China and Australia. The move will also cast a cloud over already contentious iron ore price negotiations between the country and western mining companies.
Among the Rio employees who now face trial after months of detention is Stern Hu, an Australian citizen who was Rio’s leading iron ore negotiator in China. He was arrested in July along with three of his staff, all accused of spying on Chinese mills for six years, helping to inflate the price China pays for its iron ore imports.
China said the four had been charged with violating commercial secrets and bribery after exploiting their positions to seek gain for others. Xinhua, the state news agency said: “Many times they used personal inducements and other improper means to obtain information from Chinese steel firms, causing serious consequences for the steel companies concerned.”
Observers viewed the arrests last summer as a straightforward act of retaliation on the part of the Chinese authorities. They came just weeks after Rio turned down a massive investment offer from Chinalco, the state-owned aluminium group.
Read Lake Superior Mining News‘ coverage from July, “China Arrests Rio Tinto Executive for ‘Spying.’
LSMN
Eve Divine
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